Bank of America to pay Fannie Mae $3,6 billion in cash and repurchase a residential mortgage portfolio for $6,75 billion. This is the main point of the agreement reached to settle the lawsuit relating to mortgages provided by Countrywide Financial, a subsidiary of BofA, and the Bank of America National Association between 2000 and 2008.
As reported by the Washington Post, Bank of America expects the deal to impact its fourth-quarter pre-tax profit by $2,7 billion, but believes the quarter will still be modestly positive. The Bank intends to cover payments totaling $10,35 billion using existing capital buffers and additional $2,5 billion in provisions.
